المستخلص: |
Short selling This research aims to clarify the legal ruling for short selling which is a common form of stock market trans¬actions. Short selling is the sale of a stock that the seller does not own by borrowing from another who owns them (a brokerage firm or someone else) with the promise of repurchasing them and returning them to the lend¬er later at a specific time. The primary objective of this sale is speculation with the aim of making a profit in the short term from the difference in price; consequently, only those who an¬ticipate a decline of prices engage in speculative short selling i.e making a profit from the difference between the high price of making an on the spot sale and the future low purchase. I have tried in this research to clarify the extent of the lawfulness of this transaction, and its criteria and con¬straints in three chapters. - Chapter one outlines the definition of the terms used in the research. - Chapter two addresses the juristic ruling for short- selling through two main issues, namely: i- Short-selling shares before borrowing them. ii- Short-selling shares after borrowing them. - Chapter three addresses the criteria and constraints associated with short selling through three issues, namely: i- The ruling for returning the value of the borrowed shares upon their request. ii- The ruling for binding the borrower to pay the lender dividends of the borrowed shares. iii- The ruling for putting the price of borrowed shares as security to the lender and benefitting from them.
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